What is Customer Churn and How Can You Reduce It?
Customer churn, also known as customer attrition, is a business metric that directly represents the number of customers who cease to be your customers over a given time period. Customer churn has been a problem since the days of brick-and-mortar stores. With the rise of fully digitized, online businesses, calculating and reducing customer churn has become even more important.
What exactly is customer churn?
Customer churn, also known as customer turnover or defection, is one of any company’s worst enemies. Customer churn is the number or percentage of customers who stop paying for your subscription, product, or service during a specific time period.
Customer churn directly results in a loss of returning revenue.
Customer churn stifles company growth:
A company’s growth refers to its financial value or market share increasing. This can be accomplished in a variety of ways, primarily as the company’s user base or site visitors grow.
When customers stop using a company’s product or service, the company’s brand reputation suffers, slowing the company’s overall growth.
3 Ways to Reduce Customer Churn:
Now that you understand the causes of customer churn and how to anticipate it, you can consider various strategic options for reducing it. We’ve listed 3 of them so you can start using them right away.
- Choose the “Right” Customers:
Choosing the right target audience for your company is critical to its success and customer satisfaction. If your consumer’s needs do not match the needs that your product is attempting to solve, you will inevitably have a high customer churn rate.
2. Work on Customer Retention Activities:
Attracting customers comes at a high cost, making many customer relationships unprofitable in the early stages. Relationships generate large returns only after their total customer lifetime value exceeds the cost of acquiring their business and keeping them loyal. The key component of that equation is keeping them loyal.
3. Make use of marketing automation software:
Marketing automation platforms are software applications that assist businesses in increasing the effectiveness of their marketing efforts. The marketing software handles the rest after the gaming operators enter their data into it. Marketing automation software frequently helps businesses maximize their marketing efforts by removing the need for manual marketing.
What is the best gaming marketing automation software?
OptiKPI is marketing automation software that was created specifically to promote online gaming products. The main characteristics of OptiKPI are compliance, marketing, and risk management. It aids gaming platforms in the long run by utilizing consumer data. To increase client lifetime value, OptiKPI employs a long-term strategy.
OptiKPI uses player behavior to send relevant messages to the right customers at the right time. Gaming companies benefit from having real-time knowledge and technologies at their disposal. OptiKPI is a versatile and easy-to-implement program that provides immediate solutions.
Book a free demo today https://www.optikpi.com/scheduledemo